Which One of the Following Does Not Occur in the Long

question 83

Multiple Choice

Which one of the following does not occur in the long run when firms in a market make an economic profit?

• A)Firms enter the market.
• B)The market supply curve shifts rightward.
• C)Each firm increases production.
• D)Economic profit of each firm decreases.
• E)Market price falls.

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Definitions:

Accounts Receivable

Payments pending from customers to a business for items or services that have been supplied but not yet remitted.

Cash Manager

An individual or team responsible for managing a company's cash flow to meet operational needs and investment goals.

Cash Cycle

The duration of time it takes a company to convert its investments in inventory and other resources into cash flows from sales.

Firm's Profitability

Indicates how effectively a company generates profit compared to its expenses and other relevant costs.